L A T E S T   N E W S 09 May  Audio Broadcast 07 May  Presentation at Sydney Resources Roundup 06 May  Drilling confirms Tumas palaeochannel potential 30 Apr  March Quarterly Activities Report 30 Apr  March Quarterly Cash Report Interactive Annual Report 2007 View Share Price: ASX - DYL View Uranium Price Company News Service

WELCOME TO DEEP YELLOW LIMITED

ABN: 97 006 391 948

Deep Yellow Limited (DYL) has rapidly established itself over the past 30 months as a significant member of the international uranium industry being a well-funded prominent explorer in Australia and Namibia.

Nuclear energy (and uranium as fuel) is rapidly gaining ground as an alternate base load source of electricity as the effects of fossil fuel burning and its contribution to global warming is being recognised. This realisation and looming shortages of uranium has led to a remarkable correction in its price, which has seen the price rise from US$50 15 months ago to a top of US$135 per pound, falling back to US$75. DYL expects that the recent rally in the price to US$90 is sustainable and expects the price to stabilise around these levels through 2008. DYL is setting itself up to be a supplier of this strategic metal through aggressive and successful exploration and project acquisition programmes.
  

EXPLORATION UPDATE (February 2008)

Namibia

• Tubas Project: JORC Code Inferred Mineral Resource of 77.3 million tonne at 0.023% (238 ppm) U₃O₈ at a cut-off grade of 100 ppm U₃O₈ for 17,600 tonne or 38.8 million pounds of contained U₃O₈.
   

• Alaskite Discovery: The field teams have discovered, geologically mapped, radiometrically surveyed and sampled a previously unknown alaskite occurrence (a specific granite type that hosts the Rossing uranium mine and Bannerman's and Extract's uranium mineralisation to the north and northeast). The alaskite outcrop and sub-outcrop contains extensive secondary uranium mineralisation in its weathered crust present as abundant visual carnotite.

Composite samples assayed to date have returned values of between 2,000 and 4,500 ppm U₃O₈. At present the mapped area covers about 4 km² and is being extended. Reconnaissance RC drilling of this area to 150 m depths has commenced.

• Iron Oxide - Uranium Discovery: Potentially of great significance is the discovery by Reptile geologists of a uranium mineralised iron/magnetite outcrop while following up co-incident radiometric and magnetic anomalies. This occurrence in basement rocks was mined on a small-scale for iron in the last century. Composite dump samples have returned assays of between 200 and 400 ppm U₃O₈.

The discovery area is mostly sand covered and is presently being mapped. Although the new prospect is at an early stage of assessment, three 150 m deep angled RC drill holes were drilled to test the depth potential of the mineralisation. There is minor copper staining present in the dump material.

Preliminary assay results for holes AM1, AM2 and AM3 indicate significant widths and grade of uranium mineralisation associated with the magnetite units at depth (ASX 22 January 2008).

Preliminary Uranium Assays

- Hole AM1	26m at 217 ppm U3O8 from 6m  18 m at 174 ppm U3O8 from 64 m  2 m at 455 ppm U3O8 from 140 m
- Hole AM 2	16 m at 286 ppm U3O8 from 41 m  6 m at 237 ppm U3O8 from 67 m  10 m at 348 ppm U3O8 from 98 m
- Hole AM 3	37m at 260 ppm U3O8 from 48m 4m at 715 ppm U3O8 from 112m

A diamond drill is now on site drilling hole AMD1 as a twin hole to RC hole AM3.

• Geochemical samples from helicopter supported ground checking of airborne radiometric and magnetic anomalies have returned high grade uranium assays (up to 32,935 ppm or 3.29% U₃O₈) from new mineralised areas on all four Exclusive Prospecting Licences (EPLs). (ASX 23 January 2008)
   

• Drill Rigs: Acceleration of JORC Code resource estimates is to be facilitated by bringing in an additional 4 rigs drilling a scheduled 15,000 metres per month in total.
  
  There are currently 3 RC and 1 diamond drill rig on site, with a further two RC rigs on site in mid February.
   

• Resource Target: Now 50,000 tonne (110 million pounds) of contained U₃O₈ within known areas of mineralisation.

Australia

• Significant wide intercepts returned at the Conquest Prospect namely:

- Hole DCQRC-006   22 m at 575 ppm U₃O₈ from 22 m 
- Hole DCQRC-006   13 m at 723 ppm U₃O₈ from 75 m

The entire intercept bulks out to 66 m at 373 ppm U₃O₈ from 22 m and includes 4 m at 1,863 ppm U₃O₈ from 78 m.

• Assay results received from a 47 hole RC percussion drill programme at its 100% owned Queens Gift Prospect (Mt Isa) have confirmed the presence of broad zones of uranium mineralisation. Significant intersections include:

- Hole DQRC-0032   50 m at 400 ppm U₃O₈ from 1 m 
- Hole DQRC-0033   69 m at 467 ppm U₃O₈ from 8 m 
- Hole DQRC-0041   23 m at 409 ppm U₃O₈ from 108 m 
- Hole DQRC-0047   37 m at 538 ppm U₃O₈ from 41 m

The Company consider that these results indicate that Queens Gift has the potential to host an economically viable uranium deposit.

• At the Miranda Prospect wide intercepts returned indicate that the Prospect has tonnage potential and that further drilling in the 2008 field season is warranted.

Most significant wide intercepts include:

- Hole DMRC-0008   32 m at 625 ppm U₃O₈ from 3 m 
- Hole DMRC-0009   25 m at 654 ppm U₃O₈ from 14 m
- Hole DMRC-0018   46 m at 352 ppm U₃O₈ from 6 m 

• On 21 January 2008 DYL announced that it had reached agreement with Mount Isa Mines Limited (a company within the Xstrata Group) (Xstrata) whereby DYL may ultimately acquire 100% of the uranium rights over six (6) tenements held by Xstrata. The tenements cover a total of 504 km² immediately west of the Mt Isa townsite/minesite.

CORPORATE

• DYL was formally admitted to the Namibian Stock Exchange ("NSX") on 23 January 2008.
  
  There will be no change to the DYL list on ASX.  ASX remains the primary listing for DYL and all trading by investors through the NSX will occur through the ASX.  DYL is listed on the 'Mining" sector of the Development Board of the NSW (DevX).
   

Corporate Outlook

• The success of DYL's exploration programmes in Namibia and Australia in 2007 has provided focus for 2008, which will see a ramp up of resource delineation drilling in Namibia and initiation of resource drilling at the Queens Gift prospect in Mt Isa.

With over A$62 million in cash and liquid assets DYL is well positioned for growth through exploration success in 2008.

• With the admission of Uranio Limited (Uranio) to the ASX (29 January 2008) a joint venture has been formed with Uranio holding 70% and DYL 30% in the divestment tenements. In the case of the pre-existing Siccus JV, Uranio will hold 70%, DYL 20% and Signature Resources retain their 10% holding.

As part of the settlement Uranio issued DYL with 3,849,379 shares and 3,848,379 options plus $500,000 in cash. A further $1 million in cash is due by 29 January 2009.

• The Board has approved exploration budgets totalling ~A$12 million for the 2007/2008 financial year.